"The U.S. Supreme Court refused Monday to hear a challenge to a 290,000-worker class in a suit alleging excessive health and retirement plan fees, despite an argument from benefits plan managers that the Fifth Circuit used the wrong standard to greenlight the massive suit.... The companies argued that circuits had diverged on what the proper test is for determining standing for class certification purposes in [ERISA] class actions involving benefit structures serving multiple employers." [Chavez v. Plan Benefit Servs., Inc., No. 22-50368 (5th Cir. July 15, 2024; cert. pet. denied Dec. 9, 2024)]  MORE >>

"The United States Supreme Court has agreed to hear a case on Jan. 22 involving the University and its employee retirement plan, with the potential to reshape how retirement plan administrators are held accountable under federal law.... The plaintiffs, representing over 30,000 current and former employees ... and nearly $3.4 billion in net assets, claim that Cornell fiduciaries ... allowed for excessive fees, failed to remove underperforming investments and engaged in prohibited transactions." [Cunningham v. Cornell Univ., No. 21-0088 (2d Cir. Nov. 14, 2023; cert. pet. granted Oct. 3, 2024)]  MORE >>

"Tax efficiencies, an increased focus on Roth contributions, and the use of artificial intelligence in retirement plan services are just some of the themes that ... will come into play in the new year.... [P]lan sponsors will continue to look at their plans as a destination for solving a participant's holistic set of financial needs -- beyond just saving for retirement.... [B]ecause of SECURE 2.0, plan sponsors can now offer benefits like emergency savings, student loan matching contributions and additional flexibility for in-service withdrawals."  MORE >>

"[According to the GAO], the push for disclosing the fees associated with 401k plans over the past ten years is benefitting both participants and plan sponsors. Important work remains to be done, however, as the GAO also found that clearer, more readily understandable information is needed."  MORE >>

"The funded status of the country's 100 largest corporate defined benefit pension plans increased by $5 billion during November ... As of November 30, the PFI funded ratio rose to 103.5%, up from 103.2% at the end of October, and the funded status surplus improved to $45 billion."  MORE >>

"The savings guideline states that for every $1,000 of monthly income you want to generate in your golden years, you'll need to have $240,000 saved in your retirement account. The rule assumes a 5% annual withdrawal rate and a 5% return."  MORE >>

"It's no surprise that some people opt to take an IRA inheritance in cash, accept a tax hit, and avoid dealing with RMDs altogether.... The key to managing your inherited IRA well is understanding your options at each step of the process, from inheriting, to transfers or rollovers and management, to taking distributions."  MORE >>

"[PBGC] has approved the application submitted ... by the Graphic Communications International Union Pressroom Unions' Pension Plan. The plan, based in New York City, covers 1,344 participants in the printing industry ... [and] will receive approximately $63.7 million in SFA ... The plan was projected to become insolvent and run out of money in 2031."  MORE >>

"While it is true that traditional automatic rollovers have unquestionably helped plans mitigate a portion of their cost and risk, it's also true that they have negatively impacted many participants' ability to properly save for retirement."  MORE >>

"[M]any annuities include a 'reverter' clause, often providing that any such surplus reverts back to the annuity issuer.... Such situations violate a plan sponsor's fiduciary duty of loyalty, to always act in the best interest of the plan's participants and their beneficiaries. Therefore, a simple breakeven analysis may actually establish that a plan sponsor 'knew or should have known' that the annuity was imprudent from the beginning, resulting in a breach of the plan sponsor's fiduciary duties of prudence and loyalty."  MORE >>

"[1] Continued bipartisan agreement on pension reform.... [2] Don't give up on 401(k) Plans ... [3] More and faster SECURE Act guidance ... [4] Subject ERISA litigation to reasonable pleading rules.... [5] A final decision whether ERISA fiduciary breach claims may be subject to mandatory arbitration ... [6] Loper Bright will have limited impact.... [7] Congress will not cut back employee plan tax benefits to raise revenue ... [8] The best of the [ACA] will be preserved."  MORE >>